LA fires Wholesalers Beware

[Jay Hinrichs]

Just got this bulletin From the DRE in CA.   it is illegal to offer Less than fair market value of any property in the fire area that is less than what the value was as of Jan. 6 2025.  Fines and imprisonment if violated. Plus I dont think any contract would hold up if a seller wanted out.

this goes for unsolicited  yellow letters/ robo calls / robo text style of marketing.  Its affective till March 14, 2025.  so short window I suspect the marketing will start in earnest on March 15th though !!!

@James Wise@James Hamling@Steve K.

@Scott Trench   

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[Chris Seveney]

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Just got this bulletin From the DRE in CA.   it is illegal to offer Less than fair market value of any property in the fire area that is less than what the value was as of Jan. 6 2025.  Fines and imprisonment if violated. Plus I dont think any contract would hold up if a seller wanted out.

this goes for unsolicited  yellow letters/ robo calls / robo text style of marketing.  Its affective till March 14, 2025.  so short window I suspect the marketing will start in earnest on March 15th though !!!

@James Wise@James Hamling@Steve K.

@Scott Trench   

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 Interesting. I dunno how I feel about this. I'm never in favor of government over stepping, but I can also see how desperate individuals can be taken advantage of during this tragedy.

Jim it does not restrict owners from listing with brokers and selling.. Just keeps the bottom feeders at bay for a little while.. Not sure if Hawaii did the same thing in the lahina fire I know when I was there right after the fire ( Honolulu) I read in the local paper how the locals were getting offers and were offended.. And or thought people were taking advantage.

Now in Northern CA when the Santa Rosa fire burnt down 3k plus homes nothing was done there and when the Paradise city fire burnt down the entire town of I did not see anything like this.. But those areas are not prime LA either.  

lastly I think the sellers in these areas are far more sophisticated than inner city rust belt property owners about values.. Especially CA folks who are so in tuned to RE and owning RE as you know look at all the CA investors that flock to the mid west and rust belt to buy rentals.

As someone who had a parent pass away and had a family member getting blasted with text messages with offers to buy their home after this - I can see also the side of it that is "leave them alone". For many of us we are above board and tend to think we do the right thing but the number of vultures out there is pretty significant and its really those who this is about. 

If my house burned down and I was getting text and phone calls from people with unsolicited offers I would not be very kind to them.